Yumiko Okamoto

FDI and the Dynamics of Productivity in Indonesian Manufacturing

This article examines productivity growth in the Indonesian manufacturing sector. We use a longitudinal data set to calculate the effects on aggregate manufacturing productivity growth from improvements within establishments, from reallocation of market shares, and from the turnover of plants. Productivity growth is mainly explained by reallocation of market shares and from turnover of plants. Moreover, the foreign contribution to productivity growth is unclear and depends on the choice of productivity measure. A cautious conclusion is that the foreign contribution is about the same size as the foreign share of manufacturing output. Finally, there is a difference in the causes of productivity growth between foreign and domestic plants.

Technology Development in Indonesia

The objective of this study is to examine the degree to which foreign direct investment (FDI) and technological activity have contributed to export competitiveness and economic growth in East Asia. The links between export competitiveness and its main contributory factors, namely FDI and domestic technological effort which include research and development (R&D), learning-by doing, adaptation and copying have not yet been fully explored. The ways in which these links are forged differ among countries. Some countries have placed less emphasis on FDI and the presence of transnational companies (TNCs), relying instead on building domestic technological capacity through R&D efforts, adaptation and so on. Some others have depended largely on TNC presence for their technology development and upgrading. These differences in the strategies adopted by countries in their technology development pose two important questions. They are: (i) what are the most effective ways in which technology transfer could take place through FDI? And (ii) how to adopt alternative ways of technology development in lieu of FDI?

Can Malaysia’s Growth Be Sustainable?

Since the mid 1980s Malaysia has been successful in attracting a large number of world-class electronics firms and forming an industrial agglomeration, especially in the electronics industry. As a result, Malaysia has been a leading producer of electronics products in the international market, and the industry has been an important engine of growth. It is often said, however, that since the international competitiveness of Malaysia is being eroded partly owing to the rapid emergence of China as an industrial power, it may not be possible for Malaysia to sustain its current industrial growth.

Ringing off the Hook! Japanese Telecommunications Responds to the Call of Asian Markets

The breakup of AT&T in the United States and the privatization of NTT in Japan and British Telecom in the United Kingdom profoundly affected the structure of the international telecommunications industry. Since early 1998,. telecommunications markets have changed even more significantly, as a result of the European Union throwing open its markets to competition in the provision of infrastructure and services.2